Research On Risk Governance Mechanism For China's Bond Market

Since 2006, China's bond market has had a large and small risk events in nearly 50 cases. Lacking of risk sharing mechanism and Improper use of administrative power are the main problem of risk prevention and control. In order to improve the risk countermeasures, it is urgent to establish a risk governance mechanism, clearly define the subject of risk governance structure, and confirm the relation of right and obligation, risk governance tools and risk governance procedures.In this dissertation, the author takes the risk governance mechanism of the bond market as the central issue of the research, studies the internal relationship between information, information movement and risk, puts forward a theoretical assumption about legalization of information rules as the core of risk governance mechanism construction, demonstrates the main details of the risk governance information rules, and puts forward some suggestions to perfect the information rules of risk governance. The dissertation includes five chapters.Chapter 1, Theories assumption about information movement and the cause of risk. Risk is often defined as the uncertainty of income. The author analyses the risk's connotation, form, change and characteristics, think risk means that the breakdown of the market efficiency, imbalance of personal interests, improper use of power and imperfect of market rules. As a consequence, we should not only establish the risk control and risk allocation mechanism, but also limit and regulate the inappropriate use of power in the process of risk governance. Information plays an important role in the process of generation and diffusion risk, and the risk has inner link with information movement, which means it may have some kind of possibility to dealing with risks by intervening information movement.Chapter 2, The juristic basis of information rules in risk governance. According to the above theoretical assumptions, the risk governance in bond market includes balancing information possession, regulating the flow of information, strengthening the information ability and promoting the information communication. The legalization of information rules is the core of risk governance mechanism construction, because financial law has the function of risk governance, meanwhile information rules comply with the principle of information movement and has the characteristics of legal rationality. The construction of information rules depends on some external social environment, such as public identity, the transformation of the public policy, the improvement of social credit, etc. At present, there are some institutional obstacles to the construction of information rules in China's bond market legal system.Chapter 3, The participants structure of information rules in risk governance. A comprehensive participants structure, which means plenty of participants and distinct right-duty relation of participants, is the precondition of bond market risk governance. Information ability is important standard for allocation of participants. In the process of governance, we need to take different measures according to the information ability of different participants, for example, regulating bond issuance and market intermediary abusing their information ability, empowering the vulnerable investors, and restricting public sector using their information ability.Chapter 4, The governance tools of information rules in risk governance. Information tool is a kind of risk control measures, which the public sector guides the public to make particular decision or take some kind of behavior, by delivering risk information. Information tools have the characteristics of substantive law and procedural law. In risk governance, the main function of information tools includes risk perception, risk early warning, risk governance mobilization, questioning and admonishing, and clarification the policy intention of governance activities. Public sector shall be under the specific institutional constraints when using information tools, such as the public sector should possess professional knowledge and credibility, the message should be clear, accurate and neutral, and information tools should be effectively connected with other risk governance tools.Chapter 5, The legislative suggestions to perfect construction of information rules. According to the aforementioned information-risk theory, the information rules system including several specific rules. Considering the present situation of China's bond market legal system and the phase characteristics of the bond market development, We need to attach importance to the five aspects in the process of building information rules, such as promoting the unification of bond market legal system, perfecting the information disclosure rules basing on the characteristic of bond, developing the bond market risk emergency response mechanism, enhancing public sector's information ability and regulatory cooperation, and optimizing risk education system of individual (retail) investors.